Korean Air is set to become an integrated flag carrier by 17 December 2026, following a five-year consolidation process with Asiana Airlines. The boards of both airlines approved the merger agreement on 13 May, with the formal contract execution scheduled for 14 May. This merger will see Korean Air absorb all assets, liabilities, and personnel of Asiana Airlines.

The South Korean government and state-led creditors have supported Asiana Airlines with $2.7 billion (KRW 3.6 trillion) to stabilise the aviation industry post-pandemic. Korean Air has overseen Asiana's financial restructuring, including the repayment of public funds.

The merger ratio is set at 1 share of Korean Air to 0.2736432 shares of Asiana Airlines, calculated under Korea’s Capital Markets Act. Korean Air’s capital is expected to increase by approximately $76 million (KRW 101.7 billion). The transaction will proceed as a small-scale merger, with Korean Air's board resolution substituting for a general shareholder meeting.

Korean Air plans to standardise operations by submitting a merger application to the Ministry of Land, Infrastructure and Transport and applying for amendments to Operations Specifications in June 2026. This will align Asiana's aircraft and safety systems under Korean Air’s Air Operator Certificate.

The integration aims to enhance Korean Air’s global market presence and establish Incheon International Airport as a major global hub. Service upgrades, training standardisation, and facility modernisation are planned to support expanded operations. The loyalty programme will also be consolidated to ensure a seamless transition for passengers

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